Join our daily newsletter At The Bell to receive exclusive market insights
- Strike Energy (STX) launches a “gas acceleration strategy” across its Western Australia-based projects
- With $136 million in hand from the sale of its Warrego Energy (WGO) shares, Strike is targeting four sources of gas production to come online by the end of 2025
- The first of the four sources is its project in the Walyering gas field at which, together with JV partner Talon Energy (TPD), Strike expects to begin production early this year
- Strike notes that its forward strategy is dependent on the successful outcome of appraisal activities and joint venture processes
- STX shares are up 2 per cent to 38 cents, WGO shares are up 0.7 per cent to 36 cents, TPD shares are in a trading halt but last traded at 16.5 cents, and MIN shares are up 1.75 per cent to $87.50 at 12:47 pm AEDT
Strike Energy (STX) has launched a “gas acceleration strategy” across its Western Australia-based projects.
With $136 million in hand from the sale of its Warrego Energy (WGO) shares, Strike said it was targeting four sources of gas production to come online by the end of 2025.
The first of the four sources is its project in the Walyering gas field, which, together with joint venture partner Talon Energy (TPD), Strike expects will begin producing early this year.
Talon’s shares entered a trading halt today pending an announcement relating to a capital raise.
Strike said it would be taking advantage of “attractive” WA gas market conditions, including a lack of future supply options that it said had been “exacerbated” by the entry of Hancock Energy and Mineral Resources (MIN) in the Perth Basin.
STX told investors that gas production that would have likely entered the domestic gas market for existing users would now likely be consumed internally by the two large entities.
Strike’s capital program is planned to include five wells across South Erregulla, West Erregulla and Ocean Hill.
Around 240 square kilometres of 3D seismic work is planned at Ocean Hill, while 128 kilometres of 2D seismic is planned at Eneabba Deep alongside 484 kilometres of 2D seismic across the Permian Arrino and Kadathinni leads.
Strike noted that its strategy was dependent on the successful outcome of its appraisal activities and joint venture processes.
STX shares were up 2 per cent to 38 cents, WGO shares were up 0.7 per cent to 36 cents, TPD shares last traded at 16.5 cents, and MIN shares were up 1.75 per cent to $87.50 at 12:47 pm AEDT.
